RH

A LETTER FROM OUR CHAIRMAN AND CEO

RH REPORTS SECOND QUARTER 2026 RESULTS

The Company’s Second Quarter gross margins were positively impacted by the recognition of $55M, or 600 bps, of IEEPA tariff refunds based on the Company’s application for a total refund of $69M. The Company also recognized $14M as a reduction of costs included in merchandise inventories and expects to recognize this benefit to gross margins over the Third and Fourth Quarters of Fiscal 2026.

Please see the tables below for reconciliations of all GAAP to non-GAAP measures referenced in this press release.

We recognized a tariff benefit of $55.1 million in the second quarter and expect to recognize an additional $13.9 million tariff benefit in the second half of the year, which we plan to use to offset $50 million of unplanned cost increases across our supply chain due to the significant and sustained spike in oil prices as a result of the continued conflict in the Middle East. The remaining $19 million of tariff proceeds will benefit earnings and is included in our updated adjusted EBITDA margin outlook for fiscal 2026.

SECOND QUARTER 2026 FINANCIAL RESULTS AND SHAREHOLDER LETTER

THIRD QUARTER 2026 OUTLOOK Revenue Growth of 5.0% to 6.0% (Inclusive of Backlog Reduction +2.5pts, RH Estates +2.0pts, New Galleries and Other +1.0pts)

Adjusted EBITDA Margin of 12.5% to 13.5% The above outlook includes an approximate negative 310 basis point Adjusted EBITDA margin impact from pre-opening and startup costs to support our international expansion.